Click here to watch the Trade Union Royal Commission attending to grave threats to the nation
Monday, 11 May 2015
10.07AM and no Jeremy Stoljar SC - the co-pilot is on his feet and looking nervous.
Junior Counsel Assisting Richard Scruby is leading this "case study" which relates to the purchase of two motor vehicles and certain other payments to senior officials of the TWU WA Branch.
In particular the reign of Mr McGiveron is under scrutiny by Scruby.
The essence of this hearing is about two luxury large motor vehicles purchased by the TWU just before Jim McGiveron was due to leave the union. Associated with that purchase is a "role" engineered for McGiveron that involved touring the United States and elsewhere to foster closer links with other unions - a junket. Thirdly apparently sham arrangements for Mr McGiveron to conduct work on the union's behalf, work which evaporated shortly after he was given the contract - he then became "entitled" to a huge redundancy based on a formula he'd set up prior to being "given" the job.
The Commission is now hearing from Counsel appearing for various parties.
Marvellous that James Glissen is with us on behalf of the TWU!
Kevin Starr is the first witness - he has been sworn and his witness statement is being debated by Counsel Assisting and Mr Glissen.
Mr Starr's statement with many amendments has been tendered and received into evidence.
Here's the ABC's report of the matters that are now the subject of this hearing - importantly this ABC report sets out the investigation already conducted by Judge Wayne Haylen QC of the NSW Industrial Court. Perhaps the TURC's interest in this matter discloses some problem the Commission perceives with Judge Haylen's report.
TWU employees acted inappropriately, investigation finds
Two former officials of the WA branch of the Transport Workers Union acted inappropriately over the purchase of two vehicles, an investigation has found.
The union says it was made aware of alleged inappropriate expenditure of members' funds in April and interviewed those involved, before referring the matter to the union's national office.
A subsequent investigation by acting TWU ombudsman Wayne Haylen QC found the purchase of the vehicles was inappropriate and outside the usual processes.
It is alleged the vehicles were purchased in a way that misled the branch's finance committee and was to the financial detriment of union members.
The union has begun Federal Court action to recover the funds, some of which have already been returned, and has referred the matter to the Fair Work Commission.
It has also informed the Trade Union Royal Commission.
The union said it regarded the alleged behaviour as a betrayal of its members.
"Our systems uncovered and dealt with this improper use of union funds and we will continue to make our union as corruption resistant as possible," TWU national secretary Tony Sheldon said in a statement.
"We demand high standards of conduct of officials on behalf of our members."
WA secretary Tim Dawson said the branch had beefed up its financial controls and policies in the wake of the investigation.
"The improprieties were detected by the current WA branch leadership, who then interviewed the persons in question and advised the National Committee of Management," he told journalists.
"Every effort is being made to get all the money back and we will not rest until every cent of members' money is returned to the WA branch of the union."
I had forgotten about the pain involved in listening to James Glissan QC. It is beyond description. He has been preening for about 20 minutes now. Can anyone stop him? It is very, very close to insufferable and a life in penury may be preferable. Please Commissioner, make him stop.
Commission staff paid to listen to Mr Glissan.
At 11.24 normal programming resumed.
Counsel for Mr McGiveron is now examining Mr Starr.
At 11.30 common sense prevailed and Mr Starr was excused.
Glen Barron is the next witness.
Mr Barron remembers driving Mr Burton to the dealership to buy a very special car. A car with "spotties" and other special stuff. Mr Barron understood that Mr Burton was buying the vehicle for his own personal use. Mr Barron remembers the day exactly because he took a photo with his phone and the date is recorded on the photo.
At 11.36AM a somewhat bemused Mr Barron was excused, after having flown over from Perth at government expense, he'll now go back to the hotel, check the mini-bar, have a few and slip home in amazement.
The next witness is Debra Hodgson whose statement and the statement she made to the Judge Wayne Haylen QC inquiry have been tendered and received into evidence.
Ms Hodgson is the TWU WA Branch's financial controller and she also performs PA duties for its senior officers. No potential conflicts there.
Ms Hodgson presents as a straightforward and truthful witness. She has given evidence that Mr McGiveron did not want his Ford F350 purchased during his time at the helm of the union.
Mr Scruby told Ms Hodgson that the Commission has unsuccessfully sought from the TWU WA Branch sick leave records for Mr McGiveron. Ms Hodgson states that no one within the branch has asked her to produce any records and in any case she would not be able to locate them as she is not aware of any existing. A significant part of Mr McGiveron's sham redundancy payment was based on "unused" sick leave. With no records. Nice work if you can get it.
At 12.32 Counsel for Mr McGiveron commenced his cross examination.
At 12.38 Ms Hodgson was excused.
Paul Aslan is the next witness.
Paul Aslan has taken the affirmation, his witness statement has been tendered and received into evidence.
Mr Aslan has given evidence that he was asked to move a motion for the TWU WA branch to adopt the redundancy formula worked out by McGiveron/Burton. He states both men asked him to move the motion at the meeting of the BCOM. He agreed that he was approached prior to the meeting, was instructed to type up an agreed motion, that he did that and that as instructed by McGiveron/Burton he duly moved the motion at the relevant meeting.
AT 1PM THE COMMISSION ADJOURNED UNTIL 2.30PM
AT 2.30 sharp the commission recommenced.
Timothy John Dawson has been sworn and is in the witness box.
Mr Dawson's witness statement has been adopted, it has been tendered and received into evidence.
Mr Dawson was on the TWU WA Branch finance committee, he was shown a set of minutes of a meeting which included a finance entry for branch expenditure of $80,000. Mr Dawson states that he did not know that the $80,000 related to a deposit for the two Ford F350s purchased for McGiveron et al.
Sounds like a phone intercept might be coming up.
This is what today's hearing is all about
At 3.30 Mr Dawson was excused.
The next witness is Mark Bebich